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| 2. |
Summary of Significant Accounting Policies |
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The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company's financial statements. |
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Statement of compliance |
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The financial statements of the company for the year ended 31 December 2021 have been prepared in accordance with the provisions of FRS 102 Section 1A (Small Entities) and the Companies Act 2006. |
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Basis of preparation |
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The financial statements have been prepared on the going concern basis and in accordance with the historical cost convention except for certain properties and financial instruments that are measured at revalued amounts or fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets. |
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Turnover |
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Turnover comprises the invoice value of goods and services supplied by the company, exclusive of value added tax.
Turnover is measured at the fair value of the consideration received or receivable for goods and services rendered. The company recognises turnover when the goods and service have been provided in full. |
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Tangible assets and depreciation |
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Tangible assets are stated at cost or at valuation, less accumulated depreciation. The charge to depreciation is calculated to write off the original cost or valuation of tangible assets, less their estimated residual value, over their expected useful lives as follows: |
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Plant and machinery |
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20% Reducing Balance |
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Fixtures, fittings and equipment |
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20% Reducing Balance |
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Motor vehicles |
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20% Reducing Balance |
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The carrying values of tangible fixed assets are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable. |
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Leasing and hire purchases |
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Tangible assets held under leasing and Hire Purchases arrangements which transfer substantially all the risks and rewards of ownership to the company are capitalised and included in the Balance Sheet at their cost or valuation, less depreciation. The corresponding commitments are recorded as liabilities. Payments in respect of these obligations are treated as consisting of capital and interest elements, with interest charged to the Profit and Loss Account. |
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Trade and other debtors |
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Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts. |
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Trade and other creditors |
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Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost. |
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Taxation and deferred taxation |
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Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the financial year and is calculated using the tax rates and laws that have been enacted or substantially enacted at the Balance Sheet date. |
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Ordinary share capital |
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The ordinary share capital of the company is presented as equity. |
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| 7. |
Creditors |
2021 |
2020 |
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Amounts falling due after more than one year |
£ |
£ |
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Bank loan |
32,168 |
48,000 |
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Finance leases and hire purchase contracts |
22,932 |
52,856 |
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55,100 |
100,856 |
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Loans |
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Repayable in one year or less, or on demand (Note 6) |
10,232 |
- |
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Repayable between one and two years |
10,232 |
- |
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Repayable between two and five years |
21,936 |
48,000 |
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42,400 |
48,000 |
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Net obligations under finance leases |
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and hire purchase contracts |
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Repayable within one year |
51,082 |
47,207 |
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Repayable between one and five years |
22,932 |
52,856 |
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74,014 |
100,063 |
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